Chris Lombardi puts defense and security under the spotlight, as he shares his takes on recent NATO and EU cooperation and provides insight into the company’s own long-term strategic partnerships in Europe.

Three trends are currently driving the global electricity sector: decarbonization, decentralization and differentiation. Utilities are making significant contributions to mitigate carbon emissions, while a technology revolution is …

Since the Berlin Wall came tumbling down ten years ago, EU multinationals have clamoured to get a piece of the action in the fledgling markets held back for so long under Communist rule.

From chemicals to accountancy and cars to banking, western companies have made inroads, caring more about opportunities for profit than being choosy about whether the country they are doing business with is up to date with the Union rule book, known as the acquis communautaire.

But as well-known EU firms such as BP, ABB and Price Waterhouse begin to carve out longer-term strategies and partnerships, the state of national legislation and the way it is applied in these countries is growing in importance.

Ivano Cassella, external affairs adviser for business lobby UNICE, says a key priority now must be for the Union to ensure the rules which candidate countries put in place match up to those in the Union – and that they ensure market access for EU firms. This means the partnership agreements, currently being worked out by the Commission and designed to bring central and eastern European countries’ rules into line with those in the Union, must be fully implemented.

Secondly, warns Cassella, EU producers must not be jeopardised by cheap imports from the East.

“Enlargement will increase trade flows and investment. But we need to create a level playing-field so that everyone plays under the same rules. The two key points are market access and commercial policy,” he insists.

Cassella concedes that a key issue will be balancing the need for would-be members to have transition periods for adapting to the new rule book, and protection for businesses in existing EU member states.

Hungary, Poland, Estonia and the Czech Republic are leading the pack in preparations for joining the Union – preparations which are set to get under way in earnest later this year.

But Cassella insists that others further behind in the accession race, such as Romania and Bulgaria, can boost EU member states’ confidence in their readiness to absorb capital by preparing well for enlargement.

Trade flows are greatest between Union countries and those making the most progress towards matching the EU’s rule book, he points out.

Without adequate protection on issues such as copyright, however, EU firms will be reluctant to put their money in the former Soviet bloc countries queuing up to join the 15-state Union.

The EU’s music industry, for example, is a major investor in the accession economies, with companies as keen to put money into local content as they are to bring established western artists to these new markets.

But the International Federation of the Phonograhic Industry (IFPI) warns that copyright protection in countries such as Bulgaria and Russia needs urgent attention to avoid local and world markets being flooded with counterfeits.

Poor attention to copyright details equals lack of investor confidence and ultimately lack of investment – and not just in the music industry -argues the IFPI.

What is true of copyright protection is also true in areas such as telecommunications regulation, company and taxation law.

Getting necessary rules and regulations in place as quickly as possible would provide a magnet for inward investment.